Fidelity & Deposit Co. v. Risien

284 S.W. 977, 1926 Tex. App. LEXIS 506
CourtCourt of Appeals of Texas
DecidedMay 12, 1926
DocketNo. 7571.
StatusPublished
Cited by12 cases

This text of 284 S.W. 977 (Fidelity & Deposit Co. v. Risien) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity & Deposit Co. v. Risien, 284 S.W. 977, 1926 Tex. App. LEXIS 506 (Tex. Ct. App. 1926).

Opinion

Fly, C. J.

This is a suit by appellant to recover of Alfred W. Risien, Fannie Risien, his wife, John T. Risien and his wife, Kate Risien, F. P, Skelton, W. P. Martin, C. L. Lane, Rosg M. Scott, and'Ed. F. Vanston, the sum of $5,665, less a credit of $112.90. The cause was tried by jury, and the case submitted on special issues, and judgment was rendered on the answers in favor of appellant as against Alfred W. Risien in the sum of $8,103.89, less the sum of $112.90, but against appellant as to Fannie Risien, John T. Risien and his wife, Kate Risien, Ross M. Scott, Ed. Yanston, F. P. Skelton, and W. P. Martin.

It was alleged in the second amended-petition that Alfred W. Risien had, in 1901, been appointed guardian of the estate of Clarence A. Risien, a minor, and filed a bond for $10,800 with appellant as his surety; that said guardian, on March 11, 1907, converted to his own use $3,955 belonging to said minor, and in order to secure its repayment the said Alfred W. Risien, in his individual capacity, and F. P. Skelton, W. P. Martin, and C. L. Lane, executed to Alfred W. Risien, guardian, a promissory note in the sum of $3,955, due three years after date and bearing interest at the rate of 10 per cent.; that bn December 28, Í918, the ward, Clarence A. Risien, attained his majority, and demanded of appellant a settlement of his estate, and appellant, in settlement thereof, paid him, on August 9, 1919, the sum of $5,-500, and obtained a written release of further liability on the guardian’s bond, and also conveyed to appellant all his interest in said note for $3,955; and that said Alfred W. Risien had agreed in writing to indemnify appellant for all loss on account of its surety-ship on the bond. It was further alleged that on November 1, 1915, Alfred W. Risien *978 was tbe owner of lots 5 and 6, block M., of tbe city of Carrollton, wbicb be occupied as a business homestead, of wbicb be mp.de a pretended sale with a condition of defeasance to bis brother, John T. Risien; that tbe expressed consideration was $1 and tbe assumption by John T. Risien of certain vendor’s lien notes beld against said property by J. B. Adoue; that it was provided in tbe conveyance that, upon payment of tbe notes by Alfred W. Risien to John T. Risien, tbe land should be recon-veyed to Alfred W. Risien, and Fannie Ris-ien, and that said conveyance was made for tbe purpose of defrauding creditors, and that tbe same has been abandoned as a homestead by Alfre.d W. and Fannie Risien; that on October 28, 1920, John T. Risien and Kate Risien made a pretended warranty deed to said lots to Ross M. Scott; that Scott, acting as attorney and agent for A. W. Risien, paid J. B. Adoue $404.26 in satisfaction of a mechanic’s lien beld by Adoue, and procured a transfer of said lien from said Adoue to Ed. F. Vanston, in order to show that said lien was still subsisting; that appellant, on September 3, 1919, received from A. W. Ris-ien $112.90, to be applied on bis indebtedness to appellant.

Tbe jury found that appellant, with knowledge of tbe misapplication of funds belonging to tbe estate of tbe minor by A. W. Ris-ien, guardian of tbe estate of said minor, for tbe purpose of indemnifying it against loss as surety on tbe bond of said guardian, procured from A. W. Risien, F. P. Skelton, and W. P. Martin a promissory note, of date March 11, 1907, payable three years after date in tbe sum of $3,955, with interest at 10 per cent, per annum from date and 10 per cent, attorney’s fees if not paid at maturity ; that, when tbe note was executed, it was represented that tbe note was executed for tbe purpose of giving AÍ W. Risien three years in which to restore tbe money to tbe ward’s estate and to protect and indemnify appellant, in tbe event A. W. Risien failed to repay tbe funds be bad appropriated, and it was not agreed at and prior to tbe time tbe note was executed that notes belonging to tbe A. W, Risien business should be collected and applied on said note. Tbe jury also found that appellant induced A. W. Risien to execute tbe note sued on to avoid criminal prosecution. It was also answered-by tbe jury that tbe conveyance of tbe business homestead by A. W. Risien and wife to John T. Risien was not a pretended sale, but was made to vest title in John T. Risien; tbe consideration being tbe payment of a $500 debt to tbe vendee and bis assumption of payment of debts secured by liens on tbe business homestead; tbe right to repurchase the property being a part of tbe agreement.

The facts show that appellant paid the ward, in a settlement of the affairs of his guardian, the-sum of $5,500, and be authorized appellant to collect tbe note sued on in this case.

The evidence clearly disclosed, as in effect found by the jury, that the note sued on was procured by appellant for the protection of the estate and guardian, as well as to offer some indemnity for tbe surety who would be liable on tbe bond for the misappropriation of the funds of the estate by the guardian. There was no proof of any threat of prosecution made by appellant to procure the note, for tbe guardian was fully cognizant of the fact that he had committed a crime in using the money of his ward and was willing to give tbe note while he might obtain time in which to return the money. There was a valuable consideration for the execution, of tbe note; which became not the property of appellant, but an asset of the estate of the ward.

The evidence probably sustained the answers to all the issues submitted, except the answer to the sixth issue as to the execution of tbe note having been obtained by a promise not to disclose to tbe probate court the fact of the misappropriation of the funds of tbe estate. All alleged promises to collect other notes of A. W. Risien and credit the proceeds on the note given by Risien, Martin, and Skelton to the guardian, were negatived by tbe answer of the jury to the third issue. That issue is as follows :

“Was it agreed between the plaintiff company and A. W. Risien and the defendants Skelton and Martin, at and prior to the execution and delivery by them of the note sued on, that the existing notes and accounts in the then business of A. W. Risien should be collected and applied upon said note within the three years to the maturity of said note sued on, and that plaintiff would supervise the collection' of such notes and accounts and apply such collections thereon?”

That issue was answered in the negative and destroyed the only attempted defense to the note as to fraud, offered in the evidence by Martin and Skelton.

This is a second appeal of this case; the former ■ appeal having been disposed of by a reversal of a judgment sustaining a genéral demprrer to • tbe petition of the appellant. Fidelity & Deposit Co. v. Risien (Tex. Civ. App.) 248 S. W. 1105. On that appeal it was beld that the -note given to replace money of. an estate misappropriated by the guardian was supported by a valid consideration and was binding, although not approved by the probate court. It was also held that, when the amount of the misappropriation was paid by tbe surety to the ward', the surety became subrogated to the rights of the estate to sue on the note, and that the execution ■ of tbe note was not contrary to public policy. It was also held that on the face of the petition the note was not barred by limitation. The court also held;

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Bluebook (online)
284 S.W. 977, 1926 Tex. App. LEXIS 506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-deposit-co-v-risien-texapp-1926.